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Technology Stocks : MSFT -- Should the DOJ Break it up?
MSFT 516.97-0.2%9:30 AM EST

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To: energy_investor who wrote (79)5/11/1998 10:47:00 PM
From: Scotsman  Read Replies (1) of 144
 
I just can't resist getting into this discussion. Forgive me if you have discussed this way back, I only went back about 25 posts.

I think the best comparison we have is Bill Gates and MSFT compared to Standard Oil and JD Rockefeller. For good info on this, go to the library and get the PBS video, "The Prize" by Daniel Yergan. It is a complete history of the oil industry.

But to sum up for those that can't get it, both are cut from the same cloth.

1) Both Gates and JD wanted to "stadardize" their individual industries. Both saw this as a way to provide cheap, standard, and effective products to the consumer. And, of course, both saw themselves as the person that would be the final word on what would or would not be.

2) In order to acheive this goal, they would do anything necessary. For instance, JD started a system of "drawbacks" from the railroads that would in effect cause a surcharge to be put on a competitors cost of shipping oil. This surcharge was paid in the end, not to the railroad but to JD. Hence he put himself in a superior position.

Gates had computer manufacturers pay him a liscensing fee for all computers sold, even if they did not have MSDOS or Windows under threat of losing their liscense. Thus, Gates made money on every computer sold and hence put himself in a superior position.

3) Standard was broken up, not because it was an evil company overcharging for its products, but because it had inhibited innovation by crushing its opponants. I think the same will be found about MSFT.

I too tired to write a tome as I have on the Sun and Cube threads, and I doubt you would wish me to. But I recommend getting the video or book and read up. Its fascenating, even if you don't believe the above.
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